On Friday, the Chinese Yuan managed to reach a one-year minimum versus the evergreen buck after the Chinese government decreased its official exchange rate down by about 0.9%, setting it on 6.7671 per dollar, which is the largest rebound for two years. As a matter of fact, the Chinese Yuan has headed south by 2.3% versus the evergreen buck in July.

A slumping Yuan makes Chinese products more affordable for foreign purchasers, although soaring protectionism around the world could restrict the ability of export-driven companies to derive its full benefits. Moreover, the weaker Yuan also makes it more difficult for China’s businesses to have dollar-denominated debt serviced.

The Yuan’s dive has provoked criticism from Donald Trump. US leader told that raising interest rates along with a stronger greenback makes the US economy less competitive.

Traders are anticipating an extra two rate lifts from the Federal Reserve in 2018.

A stronger greenback reflects investor optimism as for the state of the American economy and also what has been a firm revenue season.

The US-China trade clash has yet to make a powerful impact on the American economy. However, worries as for worsening tensions have suppressed investor sentiment.

US leader told that he was about to slap duties on up to $500 billion of Chinese products. Previously, Donald Trump repeated his threat to impose duties on EU vehicles. In return, the European Union promised to fight back.

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